Did you know that more than a third (36%) of homeowners aged over 40 say that making changes to their homes or home improvements would be a top priority in retirement?
This is because of the ever rising cost to find a new property. There’s no surprise that many home owners are choosing to improve their homes rather than move to a new one! Providing a new lease of life to your interior, reviving your old kitchen or adding an extension onto your home can make it feel like brand new. Making home improvements will cost you time, money and a lot of effort, but it will all be worth it in the end. The funds that you need to finance your home improvements may not be immediately available, but there are options including all government grants and other grants for windows to discover.
Let’s look at 5 handy ways how you can raise money to fund your home renovation project.
This is of course the easiest way to fund your home improvements aside from applying for the windows and doors scheme available. Investing your savings into your home renovations will be more beneficial in the long term, rather than spending the money on a holiday or a new car! Using your own savings can sometimes feel deflating, knowing that you may not be left with much once complete. However home improvements can raise the property value by a huge 10%, if you wish to sell your home in the future. Using your own cash is the cleanest way to fund your property improvements, as this way you are not obliged to pay anyone back. If you are going to be using your own cash then be sure to plan a budget, otherwise you may over spend unnecessarily.
The Benefits Of Using Your Own Savings
- The freedom to carry out home improvements at your own pace.
- Experience the benefits of an instantaneous funding speed.
- By using your own cash, you do not need to worry about interest fees or charges.
- Once all is done, you will have no loans to pay back.
- No eligibility checks to pass as you would with free government window replacement
The Disadvantages Of Using Your Own Savings
- Borrowing money to fund your home projects means that you will still have savings to fall back on when required.
- Your savings may not be enough to find larger projects.
- The potential to use a large chunk of your saving with little money left over for yourself.
- May not receive the benefits (such as installation help) that come with all government grants.
2. Using A Credit Card
If you only require a small amount for your project, then a credit card could be a great way to fund your home improvements. Usually with a credit card, you will be required to pay the money back at the end of each month.
Luckily, some organisations will allow you to pay off the fund over a longer period of time, without being charged any interest. This type of loan isn’t just given out to anyone; the homeowner must have a perfect credit history and credit score to be accepted for a credit card.
If you are accepted for the loan, be sure to pay off your debt on time, to avoid any fees or extra charges. It’s also important to keep in mind that some credits cards are subject to a yearly cost. Funding your project via credit card is much cheaper than taking out a loan, as a credit cards will offer you countless benefits depending on how long you use it and how much money you borrow.
3. Get A Secured Loan
If you choose a secured loan, you will be able as much as £100,000, will the flexibility of paying it back almost whenever you want to! However, it’s important to be aware that it could possibly be connected to your car and home. This type of loan is extremely accessible to even those who have a bad credit history, but it will put your assets at risk if you are unable to repay your debt.
The Benefits Of A Secure Loan
- You can borrow a high amount of money at a low interest rate
- The repayment periods are longer
- If you pay this loan back on time, it will enhance your credit rating
Disadvantages Of A Secure Loan
- The application process and receiving the could take some time
- As mentioned above, there is a chance that you could lose your home or car if you fail to pay your debt.
4. Re-Mortgaging For Your Home Improvements
This option is particularly beneficial if you wish to borrow a large amount of money for an entire home renovation or wish to add a large extension to the end of your home. If your house has enough equity, this could provide you with plenty of cash to help you with these types of home improvements. Although incredibly beneficial, receiving a new mortgage could be difficult and time consuming, depending on the stage you are at with your current mortgage. If you need to make quicker repayments to your current lender, then this may be expensive. However, if you are accepted, you will definitely have enough money for your home improvements.
Advantages Of Getting A Re-Mortgage
- Your homes equity could be used to receive more cash.
- You may receive a much higher rate of interest.
- The possibility of collating your debt into a single monthly payment.
Disadvantages Of Getting A Re-Mortgage
- Your current mortgage will now run over a longer period of time.
- Re-mortgaging your home could be time-consuming.
- There may be additional costs to secure a re-mortgage.
- Your assets could be re-possessed if you don’t pay on time.
5. Research All Government Grants
Being accepted for all government grants for windows could be easier than you think. There are many types of funding available from different organisations. All you need to do is research which type of funding would be the best match for your home improvement needs, check your eligibility and wait to be accepted for the windows and doors scheme.
All government grants are available for each of the different home improvement products such as windows, doors, boilers and conservatory upgrades. The budgets for the window and door schemes and their restrictions will differ from area to area. Most of the home improvement grants provided in this current climate, relate to energy efficiency. Companies are happy to provide free grants for windows and doors which will help homeowner to reduce their wasted energy and carbon emissions.
5. Conclusion
There are many ways to fund your home improvements, but each come with their own advantages and disadvantages. It is important to evaluate each funding option, including all of the government grants available and assess your home improvement needs before making your decision. Be sure to analyse your situation carefully and try not to get into the debt that you cannot afford, as this could cause many issues in the long term.